Momentum remains dull
 

The week had another lacklustre start as indices drifted further into the negative territory falling to its lowest in more than three years on Monday.

However on Wednesday, market rebounded recording some gains after many days of continuous losses but couldn’t keep up the momentum as indices returned to red zone on the following day. Overall the bourse had a week of volatile trading on thin volumes.

At week’s close the ASPI (All Share Price Index) declined marginally by 0.37 per cent to end the week at 1561.4 points while the more sensitive MPI (Milanka Price Index) edged lower to stand at 1738.9 points, down 0.09 per cent WoW.

Despite the negative outlook on financial services sector, the banking giant Commercial (COMB) managed to attract interest during the week.

A total of 0.2 million COMB shares traded over the week amounting to a value of Rs. 15 million, becoming the highest contributor towards the weekly activity.

However the counter wasn’t able to reverse its recent negative trend in the share price as the stock continued to slide by 2.5 per cent WoW to close at Rs. 67.75 on Friday.

Renuka Holdings (RHL) became the second highest turnover contributor with most of its stock trading taking place on Thursday.

On Thursday nearly 0.3 million RHL shares traded mostly at Rs. 45 per share. During the week a total of 0.33 million shares of RHL traded within a share price band of Rs. 38 and Rs. 45, contributing Rs. 14.8 million towards the weekly activity. Renuka Holdings share price appreciated by 12.5 per cent WoW.

Defensive stock, Ceylon Tobacco (CTC) gained investor attention over the week helping it to get among the top contributors. During the week a total of 0.12 million CTC shares changed hands adding Rs. 7.7 million to the weekly market turnover.

Counter during the 3 days of trading touched a highest price of Rs. 66.50 and a lowest of Rs. 63 before closing the week at Rs. 66.50, up 0.8 per cent compared to previous week’s closing levels. Although bourse managed to avoid significant losses this week, market still lacked healthy retail participation, as investors remained worried about the macro outlook.

The weekly turnover during the holiday depleted 3-day trading week stood at Rs. 97.7 million compared to last week’s Rs. 271 million.

Furthermore on a daily average basis the turnover stood at Rs. 32.6 million, down 40 per cent compared to Rs. 54.2 million of previous week. Foreign investors this week became net sellers reversing its position as net buyers posted last week with a total net outflow of Rs. 12.2 million. Foreign purchases was down by 49.4 per cent to stand at Rs. 16.4 million, while foreign sales experienced an 18.7 per cent increase to stand at Rs. 28.6 million for the week.

Foreign participation during the week improved to 23 per cent of total activity, compared to last week’s 10.4 per cent.

The most heavily traded stocks during the week were Seylan Merchant, Vallibel, Ceylon Hotels Corporation, Renuka Holdings etc.

This information has been compiled from sources that we believe to be reliable but we do not hold ourselves responsible for its completeness or accuracy. No matter published herein create any liability of any kind of HNB Stockbrokers (Private) Limited or its associates. All opinions, views, findings and conclusions included in this report constitute our judgment of this date and are subject to change without notice.